By BusinessWorld
The micro, small, and medium enterprise (MSME) and startup ecosystem is becoming more attuned to the need for adaptability and sustainability by assigning more weight to lean, efficient operations, industry experts said, noting that the realignment of priorities is becoming more pronounced as tough times loom.
“With so much global uncertainty, everybody is back to their conservative stance,” Dan I. Siazon, co-founder and senior vice-president of venture capital firm Kickstart Ventures, Inc., told BusinessWorld. “The challenge is to go beyond that and seek opportunity.”
The Asian Development Bank (ADB) reported that 73.1% of Philippine MSMEs faced a sharp drop in domestic demand and operational standstills due to the quarantine imposed at the onset of COVID-19. While businesses continue to deal with the tail end of the crisis, new challenges have emerged in the form of supply chain disruptions caused by the Russia-Ukraine war, as well as surging oil and food prices.
“Many businesses are under pressure to address cost management, pricing dynamics, supply chain diversification, and alternative ways to be creative and productive,” according to Rosemarie B. Ong, chairman of the Philippine Retailers Association (PRA), who also cited the impact of the adverse inflationary environment.
“They don’t want to pass on the costs to the price-sensitive consumer, while maintaining profitability,” she added.
These enterprises have recalibrated to recognize the need for transformation appropriate for the times, reimagining workflows and offerings to become more sustainably competitive. From leveraging e-commerce platforms to implementing automation, MSMEs have embraced technology as a key enabler of an efficient resurgence.
“There is an awakening,” according to Jason Christian Gaguan, co-founder of market insights startup Agile Data Solutions, Inc. and assistant vice-president for commercial at SM Supermalls, referring to MSMEs and startups. “I’m excited about it because everyone now is starting to innovate, which is good for the ecosystem.”
“What we’ve seen now is as we go back to normal and embrace new technology, it’s really more of adapting,” Ms. Ong said on the MSME recovery. “So they can leverage new avenues for their marketing and sales (to become more efficient).”
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